@EDGORE: It has no backwards compatibility with the PS2, but the PS1 support is still there, otherwise Sony would lose out by having some PS3 owners not able to buy PS1 games from the PlayStation Network.

It’s Sony’s mistake really, as not making clear why they’ve dropped PS2 compatibility on this SKU could do them some serious damage.

Sony had given the impression that the PAL PS3 was using software-only PS2 emulation. The best possible scenario for Sony is that they’re merely embarassed because that wasn’t true, and they’ll just have to go on another PR charm offensive to clear things up.

On the other hand, if it was true then potential buyers are going to be pissed because they know Sony’s taking a feature away from the PS3 that costs them nothing for the sake of product differentiation. Meanwhile current and potential owners of software emulating PS3s are going to be pissed because this could easily be interpreted as a sign that emulation development is coming to a halt, meaning all the games that still don’t run on the PS3 never will.

Palm CEO Ed Colligan admits the Linux-based Palm OS update won’t be available until late 2008.

By that time, iPhones will cost $99 and will include a feature that commiserates with you after you’ve been shot down for the third time: “Aw, who needs those losers, anyway? Hey, tell ya what, next round’s on me.”